Homework Answers
CAPITAL GAIN
ANY PROFIT OR GAIN THAT ARISES FROM THE SALE OF A CAPITAL ASSET IS A CAPITAL GAIN.
LAND, BUILDING, HOUSE PROPERTY, VEHICLES, PATENTS, MACHINERY, TRADEMARKS AND JWELLERY ARE A FEW EXAMPLES OF CAPITAL ASSETS.
TYPES OF CAPITAL ASSETS
SHORT TERM CAPITAL ASSETS ;- AN ASSET HELD FOR A PERIOD OF 36 MONTHS OR LESS IS A SHORT TERM CAPITAL ASSETS. THE CRITERIA OF 36 MONTHS HAVE BEEN REDUCED TO 24 MONTHS FOR IMMOVABLE PROPERTIES SUCH AS LAND, BUILDING, AND HOUSE PROPERTY FROM FY 2017-2018.
LONG TERM CAPITAL ASSETS ;- AN ASSET THAT IS HELD FOR MORE THAN 36 MONTHS IS A LONG TERM CAPITAL ASSET. THE REDUCED PERIOD OF THE AFOREMENTIONED 24 MONTHS IS NOT APPLICABLE TO MOVABLE PROPERTY SUCH AS JWELLERY, DEBT ORIENTED MUTUAL FUNDS ETC. THEY WILL BE CLASSIFIED AS A LONG TERM CAPITAL ASSET IF HELD FOR MORE THAN 36 MONTHS AS EARLIER.
TAX ON SHORT TERM AND LONG TERM CAPITAL GAINS
| TAX TYPE | CONDITION | TAX APPLICABLE |
| LONG TERM CAP[ITAL GAINS TAX | EXCEPT ON SALES OF EQUITY SHARE/ UNITS OF EQUITY ORIENTED FUND | 20% |
| LONG TERM CAPITAL GAINS TAX | ON SALES OF EQUITY SHARES/ UNITS OF EQUITY ORIENTED FUND | 10% OVER AND ABOVE RS. 1 LAKH |
| SHORT TERM CAPITAL GAINS TAX | WHEN SECURITIES TRANSACTION TAX IS NOT APPLICABLE | THE SHORT TERM CAPITAL GAIN IS ADDED TO YOUR INCOME TAX RETURN AND THE TAX PAYER IS TAXED ACCORDING TO HIS INCOME TAX SLABED. |
| SHORT TERM CAPITAL GAINS TAX | WHEN SECURITIES TRANSACTION IS APPLICABLE | 15% |
2. IT CAN NOT PUT IT ON LINE 9 aOF THE FULL FORM 1040. IT GOES ON SCHEDULE D. THEN TO LINE 13 OF THE FORM 1040.
Add Answer to:
(2. Capital Gains and Losses. (Obj. 2) a. Distinguish between long-term capital gain and short-term capital...
Martha has both long-term and short-term 2018 capital gains and losses. The result of netting these gains and losses is a net long-term capital loss. Martha has no qualified dividend income. Also, Mar...
Martha has both long-term and short-term 2018 capital gains and losses. The result of netting these gains and losses is a net long-term capital loss. Martha has no qualified dividend income. Also, Martha’s 2018 taxable income puts her in the 24% tax bracket. Which of the following is correct? a. Martha will use Parts I, II, and III of 2018 Form 1040 Schedule D. b. Martha will not benefit from the special treatment for long-term capital gains. c. Martha will...
Patti has the following capital gains and losses for the current year: Short-term capital gain $...
Patti has the following capital gains and losses for the current year: Short-term capital gain $ 1,000 Short-term capital loss 8,000 Long-term capital gain 5,000 Long-term capital gain 16,000 Long-term capital loss 3,000 What is the effect of the capital gains and losses on Patti's taxable income?
Iris has the following results of netting her short-term and long-term capital gains and losses for...
Iris has the following results of netting her short-term and long-term capital gains and losses for 2019: $56,000 short-term capital loss and $82,000 net long-term capital gain ($21,000 0%/15%/20% long-term capital gain and $61,000 25% long-term capital gain). a. What is her net capital gain or loss for 2019? b. If there is a net capital loss, how much and what type of the loss carries over to 2020? c. If there is a net long-term capital gain, what is...
Rikki has the following capital gains and losses for the current year: Short-term capital gain $1,000...
Rikki has the following capital gains and losses for the current year: Short-term capital gain $1,000 Long-term capital gain 11,000 Long-term capital loss 3,000 Collectibles gain 8,000 Collectibles loss 2,000 Assume that Rikki is in the 32% marginal tax rate bracket and Rikki's AGI is less than $200,000. Refer to the Capital gains and losses (individuals) table to answer the following question. Due to the effect of the capital gains and losses, Rikki's taxable income is increased by $ and...
Jawan has the following capital gains and losses in the current year: Short-term capital loss $1,300...
Jawan has the following capital gains and losses in the current year: Short-term capital loss $1,300 Long-term capital gain 8,600 Long-term capital loss 4,100 Long-term capital loss carryforward 3,500 What is the effect of the capital gains and losses on Jawan's taxable income? The capital gain and loss netting results in a short-term capital loss of $ Feedback Check My Work The netting procedure determines the net long-term and short-term capital gains or losses for the year.
1. Bear Corporation has net short-term capital gains of $45,000 and net long-term capital losses of...
1. Bear Corporation has net short-term capital gains of $45,000 and net long-term capital losses of $285,000 during 2019. Bear Corporation had taxable income from other sources (not capital gains or losses) of $700,000. Prior years' transactions included the following (in each of these prior years taxable income was in excess of $1 million): 2015 2016 2017 2018 Net short-term capital gains Net long-term capital gains Net short-term capital gains Net long-term capital gains $150,000 $60,000 $45,000 $105,000 The amount...
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed...
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed as short-term capital gain, long-term capital gain taxed capital gain taxed at 15%, or long-term capital gain taxed at 0%. Assum as single and this is the only capital asset sold during the year. determine whether the gain ved at 20%, long-term %. Assume the taxpayer files a. Stock held for four years is sold for a $3,000 gain; taxable income is $25.000 b....
Carrot Corporation, a C corporation, has a net short-term capital gain of $240,000 and a net...
Carrot Corporation, a C corporation, has a net short-term capital gain of $240,000 and a net long-term capital loss of $230,000 during 2018. Carrot Corporation had taxable income from other sources of $720,000 during 2018. Carrot corporation had the following gains and losses during the years it had been in existence: 2014 Net long-term capital loss $30,000 2015 Net short-term capital gain 45,000 2016 Net short-term capital loss 100,000 2017 Net long-term capital gain 15,000 Compute the amount of Carrot’s...
Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain,...
Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Fox’s income tax and Medicare contribution tax if his taxable income before consideration of his capital transactions is $421,000. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
5. Netting Capital Gains and Losses. (Obj. 3) In each of the following cases, use the...
5. Netting Capital Gains and Losses. (Obj. 3) In each of the following cases, use the netting! process between groups to determine the taxpayer's net capital gain and the tax rate paid on such gain. Assume the taxpayer files jointly and these are the only capital assets sold during the year. a. A $2,000 loss on the sale of a capital asset held six months; a $9,000 gain on the sale of a capital asset held for three years. Taxable...
Patti has the following capital gains and losses for the current year: Short-term capital gain $ 1,000 Short-term capital loss 8,000 Long-term capital gain 5,000 Long-term capital gain 16,000 Long-term capital loss 3,000 What is the effect of the capital gains and losses on Patti's taxable income?
Rikki has the following capital gains and losses for the current year: Short-term capital gain $1,000 Long-term capital gain 11,000 Long-term capital loss 3,000 Collectibles gain 8,000 Collectibles loss 2,000 Assume that Rikki is in the 32% marginal tax rate bracket and Rikki's AGI is less than $200,000. Refer to the Capital gains and losses (individuals) table to answer the following question. Due to the effect of the capital gains and losses, Rikki's taxable income is increased by $ and...
Jawan has the following capital gains and losses in the current year: Short-term capital loss $1,300 Long-term capital gain 8,600 Long-term capital loss 4,100 Long-term capital loss carryforward 3,500 What is the effect of the capital gains and losses on Jawan's taxable income? The capital gain and loss netting results in a short-term capital loss of $ Feedback Check My Work The netting procedure determines the net long-term and short-term capital gains or losses for the year.
1. Bear Corporation has net short-term capital gains of $45,000 and net long-term capital losses of $285,000 during 2019. Bear Corporation had taxable income from other sources (not capital gains or losses) of $700,000. Prior years' transactions included the following (in each of these prior years taxable income was in excess of $1 million): 2015 2016 2017 2018 Net short-term capital gains Net long-term capital gains Net short-term capital gains Net long-term capital gains $150,000 $60,000 $45,000 $105,000 The amount...
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed as short-term capital gain, long-term capital gain taxed capital gain taxed at 15%, or long-term capital gain taxed at 0%. Assum as single and this is the only capital asset sold during the year. determine whether the gain ved at 20%, long-term %. Assume the taxpayer files a. Stock held for four years is sold for a $3,000 gain; taxable income is $25.000 b....
5. Netting Capital Gains and Losses. (Obj. 3) In each of the following cases, use the netting! process between groups to determine the taxpayer's net capital gain and the tax rate paid on such gain. Assume the taxpayer files jointly and these are the only capital assets sold during the year. a. A $2,000 loss on the sale of a capital asset held six months; a $9,000 gain on the sale of a capital asset held for three years. Taxable...
Most questions answered within 3 hours.
-
Please, I am evaluating an error term y = 5^(n+1)*(n+1)
and wish to find the number...
asked 1 minute ago -
calculate the ph of the sodium after the addition of following
amounts of 0.0663M HNO3 to...
asked 5 minutes ago -
What is the path of a carbon atom during photosynthesis , light
dependent and non dependent,...
asked 8 minutes ago -
The balanced equation for the combustion of butane,
C4H10, is
2 C4H10(g) + 13
O2(g) →...
asked 9 minutes ago -
Q1 At depths of 2000 m in the sea, the pressure is about 200
times atmospheric...
asked 24 minutes ago -
A value commonly taken for the perception reaction time of
motorists is delta t equals 1.5...
asked 17 minutes ago -
For
a test of independent groups, a t test can still be conducted even
when assumptions...
asked 37 minutes ago -
What assumption are we making about ratings e.g., that ratings
are important in motivating poor performers...
asked 45 minutes ago -
You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 11 percent,...
asked 46 minutes ago -
In which of the following cases is the displacement's
magnitude half the distance traveled? a. 10...
asked 1 hour ago -
(InputMismatchException) and (ArrayIndexOutOfBoundsException):
Using the two arrays shown below, write a program that prompts the
user...
asked 1 hour ago -
A basketball of mass m = 630 g rolls off the hoop's rim, falls
from a...
asked 1 hour ago